Hyderabad: The Enforcement Directorate (ED) and the Metropolitan Sessions Judge has convicted all the accused involved in Chiakkilam Trade House Limited Bank Fraud case amounting to Rs. 2.08 crore and sentenced them to jail terms.
A case under Section 3 of the Prevention of Money Laundering Act, (PMLA) 2002 is registered against T Jayasree, M Chinna (employees of M/s Chakkilam Trade House Limited) and three bank officials namely S Narasimhan, A Sesibhushana Rao and S Arogyam for cheating the SBI bank.
All the five persons were sentenced to undergo rigorous imprisonment for a period of seven years and were asked to pay a fine of Rs. 50,000 each. Further, the Court has directed M/s Chakkilam Trade House Limited to pay a fine of Rs. 1 lakh.
Prevention of Money Laundering Act investigation was conducted by ED on the basis of a case registered by the Central Bureau of Investigation, Anti-Corruption Branch, Hyderabad under various provisions of Indian Penal Code (IPC) and Prevention of Corruption Act, 1988.
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The ED investigation established that M/s Chakkilam Trade House Limited (then represented by its Director Late Sh. Chakkilam Raghuram) had fraudulently availed a loan from SBI on the basis of fabricated financial statements, board resolution and documents showing higher turnover and fake MoUs with various parties showing business dealings.
A total amount of Rs 2.08 crore sanctioned by SBI was misappropriated and laundered.
Investigation also revealed that properties, which were mortgaged with the banks for the loan, were already sold by the company and its promoters.
On conclusion of investigation, ED filed a Prosecution Complaint in December 2013 against M/s Chakkilam Trade House Limited and six accused persons, including three bank officials, involved in the offence of money laundering.